Give an example of an income statement, a statement of retained earnings, and an unclassified balance sheet, and closing entries for the following transactions.

Record depreciation using a 5-year life on the office equipment, the straight-line method, and no salvage value. Round to whole numbers. Also, record an adjustment for art supplies used in the amount of $1,510 and record interest expense for the note.

1.July 1 Ajayi Art, Inc. is started with an investment of $250,000 cash.

2.July 1 Ajayi purchases office equipment for $22,250 by signing a 10% note (interest and principal to be paid over the next 12 months).

3.July 6 Pays rent for the art gallery in advance for the next three months with a check for $3,000.

4.July 8 Purchases art supplies from Wacky Art Co. on credit for $10,300.

5.July 9 Receipt of $3,500 from a customer who has commissioned a piece of custom art to be completed by the end of the year.

6.July 11 Pays miscellaneous office expenses totaling $375 in cash.

7.July 13 Bills customers $4,300 for art classes provided in June.

8.July 15 Pays $3,500 to Wacky Art Co.

9.July 20 Receives $1,900 from customers on account.

10.July 30 Ajayi records $3,800 in salaries for the month of July. Paychecks will be disbursed to employees on August 2nd.